Correlation Between Excelsior Medical and Asia Metal
Can any of the company-specific risk be diversified away by investing in both Excelsior Medical and Asia Metal at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Excelsior Medical and Asia Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Excelsior Medical Co and Asia Metal Industries, you can compare the effects of market volatilities on Excelsior Medical and Asia Metal and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Excelsior Medical with a short position of Asia Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelsior Medical and Asia Metal.
Diversification Opportunities for Excelsior Medical and Asia Metal
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Excelsior and Asia is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Excelsior Medical Co and Asia Metal Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Metal Industries and Excelsior Medical is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Excelsior Medical Co are associated (or correlated) with Asia Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Metal Industries has no effect on the direction of Excelsior Medical i.e., Excelsior Medical and Asia Metal go up and down completely randomly.
Pair Corralation between Excelsior Medical and Asia Metal
Assuming the 90 days trading horizon Excelsior Medical Co is expected to under-perform the Asia Metal. But the stock apears to be less risky and, when comparing its historical volatility, Excelsior Medical Co is 7.99 times less risky than Asia Metal. The stock trades about -0.59 of its potential returns per unit of risk. The Asia Metal Industries is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 8,280 in Asia Metal Industries on October 14, 2024 and sell it today you would lose (110.00) from holding Asia Metal Industries or give up 1.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Excelsior Medical Co vs. Asia Metal Industries
Performance |
| Timeline |
| Excelsior Medical |
| Asia Metal Industries |
Excelsior Medical and Asia Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excelsior Medical and Asia Metal
The main advantage of trading using opposite Excelsior Medical and Asia Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excelsior Medical position performs unexpectedly, Asia Metal can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Asia Metal will offset losses from the drop in Asia Metal's long position.| Excelsior Medical vs. Wellell | Excelsior Medical vs. YungShin Global Holding | Excelsior Medical vs. Abnova Taiwan Corp | Excelsior Medical vs. Phytohealth Corp |
| Asia Metal vs. Medigen Biotechnology | Asia Metal vs. Grand Ocean Retail | Asia Metal vs. Excelsior Medical Co | Asia Metal vs. Golden Biotechnology |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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